Table of Contents
- 1 What are the special rules of evidence with regard to negotiable instruments?
- 2 What law is applicable to negotiable instruments?
- 3 What are the types of negotiable instrument?
- 4 What are the characteristics of negotiable instrument?
- 5 Which of the following will not be negotiable instruments?
- 6 What is Section 13 of negotiable instrument Act?
- 7 Which is the best law for negotiable instruments?
- 8 What does endorsement mean for a negotiable instrument?
What are the special rules of evidence with regard to negotiable instruments?
Unlike a regular contract, where the burden of proof of proving the consideration lies with the party seeking to enforce it, in the case of a negotiable instrument, consideration is presumed. This is a special rule of evidence since the party denying the consideration has to rebut the presumption of consideration.
What law is applicable to negotiable instruments?
Negotiable instruments are mainly governed by state statutory law. Every state has adopted Article 3 of the Uniform Commercial Code (UCC), with some modifications, as the law governing negotiable instruments.
What does Section 6 deals within the Negotiable Instruments Act?
Cheque. A ”cheque” is a bill of exchange drawn on a specified banker and not expressedto be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.
What is the section of negotiable instrument Act?
Section 60. Instrument negotiable till payment or satisfaction. Section 61….Language.
Act ID: | 188126 |
---|---|
Act Year: | 1881 |
Short Title: | The Negotiable Instruments Act, 1881 |
Long Title: | An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques. |
Ministry: | Ministry of Finance |
What are the types of negotiable instrument?
Most Common Types of Negotiable Instruments are;
- Promissory notes.
- Bill of exchange.
- Check.
- Government promissory notes.
- Delivery orders.
- Customs Receipts.
What are the characteristics of negotiable instrument?
Features of Negotiable Instruments
- Easily Transferable: A negotiable instrument is easily and freely transferable.
- Must be in Writing: All negotiable instruments must be in writing.
- Time of Payment must be Certain: If the order is to pay when convenient then such an order is not a negotiable instrument.
What are the features of negotiable instruments?
Can a negotiable instrument be handwritten?
To be valid, a negotiable instrument must meet the following requirements: It must be a written document: All negotiable instruments must be in writing. The document can be printed, handwritten, engraved, typed etc. It must be payable to order or to bearer: negotiable instruments may state a payee or not.
Which of the following will not be negotiable instruments?
Crossed cheque is not a negotiable instrument. A cheque is a negotiable instrument. While a crossed cheque is not payable over the counter but shall be collected only through a banker. The amount payable for the crossed cheque is transferred to the bank account of the payee.
What is Section 13 of negotiable instrument Act?
Explanation (i) — A promissory note, bill of exchange or cheque is payable to order which is expressed to be so payable or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it shall not be transferable.
What is the most important feature of negotiable instrument?
Important Features of Negotiable Instruments A negotiable instrument payable to bearer is transferable merely by delivery whereas a negotiable instrument payable to order is transferable by endorsement and a delivery. The consideration is not mentioned on the Negotiable Instrument.
What are the two main types of negotiable instruments?
Negotiable instruments include two main types: an order to pay (encompasses drafts and checks) and promises to pay (promissory notes and CD’s). The instruments can also be classified as demand instruments or time instruments. Thus there are four types of negotiable instruments.
Which is the best law for negotiable instruments?
negotiable instruments law: an overview. Negotiable instruments are mainly governed by state statutory law. Every state has adopted Article 3 of the Uniform Commercial Code (UCC), with some modifications, as the law governing negotiable instruments.
What does endorsement mean for a negotiable instrument?
Section 15 defines endorsement as follows: “When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as negotiable instrument]
Which is a negotiable instrument in the UCC?
Checks are negotiable instruments but are mainly covered by Article 4 of the UCC. See also Banking Law. Secured transactions may contain negotiable instruments but are predominantly covered by Article 9 of the UCC.